Kathmandu. The report on the bill designed to amend the Nepal Rastra Bank Act, 2058 BS has been unanimously passed.

A meeting of the Finance Committee held on Wednesday unanimously endorsed the report on the bill.

Some important things have been modified in it. In which the objectives of Nepal Rastra Bank have been made clear and concise.

The bill proposes to reduce the tenure of the governor, deputy governor and board members from the current 5 years to three years.

Similarly, the qualifications and experience of the governor, deputy governor and independent board members have been made timely and it has been made mandatory to appoint at least one woman as an independent board member.

The bill also stipulates that the incumbent office bearer of a commercial bank or financial institution or the Chief Executive Officer (CEO) who has not retired from such post for two years cannot become a member of the board of directors.

Likewise, any person holding more than 0.5 percent shares in commercial banks and financial institutions is ineligible to become a board member.

As per the provision, Nepal Rastra Bank should formulate the monetary policy, announce and publish it on the 1st day of the month of Saun every year.

Similarly, the provision of Section 106C of the Act where the government can give directions regarding currency, banking and finance has been retained. In addition, the Finance Minister has been directed to immediately initiate the necessary amendment process in Section 18 of the Bank and Financial Institutions Act, 2073 to address the problem arising out of the punishment provision mentioned in sub-section (2) (a) of Section 100 of the Nepal Rastra Bank Act.

Likewise, the NRB has decided to expand the scope of Citizen Investment Trust, Employee Provident Fund and Social Security Fund to regulate and supervise them.